Container traffic is expected to remain the primary driver of growth at Indian ports through FY28, with overall port volumes projected to expand at a compound annual growth rate (CAGR) of up to 9%, according to a report by Motilal Oswal.
The report attributes the positive outlook to rising containerisation of cargo, steady growth in India’s merchandise trade, and continued investments in port infrastructure and multimodal logistics connectivity. Expanding manufacturing activity, increasing exports, and the government’s focus on improving supply chain efficiency are also expected to support higher container throughput.
Private ports are likely to outperform major ports owing to their operational efficiency, deeper drafts, modern cargo-handling facilities, and strong connectivity to industrial and consumption centres. Capacity expansion projects and greater adoption of technology are expected to further strengthen their competitive position.
The report also highlighted that policy initiatives such as PM Gati Shakti, the National Logistics Policy, and ongoing investments in dedicated freight corridors and port-led infrastructure development are enhancing the country’s logistics ecosystem, enabling ports to handle rising cargo volumes more efficiently.
While global trade uncertainties and geopolitical tensions remain potential risks, the report maintains that India’s long-term trade prospects and growing container traffic will continue to underpin healthy growth for the country’s port sector through FY28.
